December 11, 2015
By Bob Coleman
Editor, Fraud Friday
Fraud Friday — Nik Patel Indicted on 5 Counts of Fraud
Fourteen months after his arrest in a $179 USDA b&i million loan fraud, the feds have formally charged Nik with five counts of fraud.
Patel is accused of selling 26 fake loans to Pennant Management.
- The five counts are:
- Emailing fake, photoshopped audited financial statements about his company, First Farmers, to Pennant Management.
- Pocketing $14 million from Pennant on July 19, 2013 after a submitting a faked, photoshopped loan package containing, an assignment guarantee agreement, a term note, and a loan note guarantee.
- Got another $13 million one week later.
- And $17 million in February 2014.
- Finally, another email transmission of fake documents right before his arrest in September 2014.
Nik faces 100 years in prison on the five counts.
Interestingly, the indictment discusses a co-schemer who has yet to be charged.
Quoting from the Orlando Sentinel’s Paul Brinkman, “The new indictment refers to a co-conspirator who was president of Patel’s company, First Farmers Financial, but doesn’t name the person. Patel’s business partner, Timothy G. Fisher of California, was an officer of First Farmers. Patel’s wife, Trisha Patel, has also been sued civilly in connection with the alleged fraud.”
About $100 million has been recovered to date by selling off Patel’s hotels, cars and personal jewelry.